How to choose an appropriate investment option for you
Choosing a super or pension investment option can feel overwhelming – but it doesn’t have to be. The option that is appropriate for you isn’t about picking the best performer last year. It’s about choosing an option that fits your stage of life, your comfort with risk, and your long‑term goals.
Here are some questions you may ask when deciding which investment option is appropriate for you whether you’re in super (accumulation) or pension phase. You should also consider seeking financial advice to help you with this decision.
1. How long until I’ll need my super?
One of the most important factors is time.
- If retirement is decades away, you generally have more time to ride out market ups and downs.
- If you’re closer to retirement, protecting what you’ve already built may matter more than chasing higher returns.
- If you’re already in pension phase (or about to start one), you may want to think about how soon you’ll need to access payments from your pension account and how long your money needs to last.
Why this matters
Investment options with higher exposure to growth assets can fluctuate more in the short term but historically offer higher returns over the long term. More conservative options tend to fluctuate less but may grow more slowly. In retirement, large market falls early on can have a bigger impact when withdrawals are being made. Howevert (, some people may be in retirement for several decades and prefer to continue holding a higher portion of growth assets.
Dive into the detail on our investment options and what they have to offer here. Please read the PDS before making an investment decision.
Case study*
Jess, 28 – long‑term growth
Jess is early in her career and doesn’t plan to access her super for decades.
She’s comfortable with market fluctuations and wants her super working hard over the long term.
What she prioritises:
- Long‑term growth
- Willingness to ride out ups and downs
- Investing in line with her values
Jess may consider a higher growth option, knowing that short‑term volatility matters less over a long investment horizon.
* Please note this is an example for illustrative purposes only and should not be relied upon as financial advice
2. How comfortable am I with ups and downs?
All investing involves risk – but people experience it differently.
Ask yourself:
- How would I feel if my balance went down in a market downturn?
- Does my investment option suit my stage of life, especially if I am in or approaching retirement ?
- Would I be comfortable staying invested, or would I lose sleep?
There’s no “right” answer. The option is one you’re comfortable sticking with, even during volatile periods.
Case study*
Anita, 60 – protecting what she’s built
Anita plans to retire in the next few years and expects to rely on her super savings (and soon, a pension income stream) to fund her retirement. Over time, she’s gradually shifted her focus from maximising returns to protecting her balance from large market swings. She knows investment market swings would make her feel anxious. Anita values having an option that better aligns with her comfort level as she approaches retirement. She understands that changing investment options at the wrong time can lock in losses so she will need to carefully consider the timing of any such changes.
- What she prioritises:
- Capital preservationLower volatility
- Confidence her money is still invested responsibly
Anita may prefer a more conservative option, knowing it’s still invested ethically and in line with her values.
* Please note this is an example for illustrative purposes only and should not be relied upon. We recommend seeking financial advice to ensure the timing of any changes you may consider is appropriate for your circumstances and takes into account any losses that may arise.
3. Do I want growth, stability, or a balance of both?
Most super funds offer a range of options along a risk spectrum, such as:
- Higher growth options for long‑term growth
- Balanced options for a mix of growth and stability
- Conservative options focused on capital preservation
Your choice doesn’t have to be permanent – you can review and change it as your circumstances change, . Explore the risk profiles of the different options here.
Case study*
Mark, 45 – balancing growth and stability
Mark has built a solid super balance but still has many years until retirement. He wants growth but also values some stability as his balance becomes more meaningful.
What he prioritises:
- A balance between growth and risk
- Smoother returns over time
- Ethical investing across his whole portfolio
A balanced or growth option may suit Mark, giving him continued growth while managing volatility.
* Please note this is an example for illustrative purposes only and should not be relied upon as financial advice
4. Does my super align with my values?
Our research1 indicates that Australians have expectations their super funds invest in an ethical, responsible or sustainable ways, but often don’t realise they’re not (unless they’re already Australian Ethical members!)
All of our investment options are ethically and responsibly invested, regardless of risk level. That means
- Your retirement savings are invested in line with clear ethical standards
- Environmental, social and governance factors are considered across every option
- You don’t have to trade off your values to suit your age, risk appetite or life stage
This is different from funds where ethical investing can be limited to a single option, which results in members being forced to choose between values and suitability. Discover our approach to ethical investing here.
Case study*
David, 64 – transitioning to pension
David is preparing to move from super into a pension. His focus has shifted from maximising growth to protecting his retirement savings, while still generating reliable income.
Ethical investing remains important to David - he wants confidence that his money continues to be invested responsibly, even as his needs change.
What he prioritises:
- Lower volatility as he begins drawing an income
- Protecting the balance he’s built over time
- Continuing to invest ethically in retirement
By choosing a more defensive option as he moves into pension, David can manage risk without compromising on his values – because all investment options are ethically and responsibly invested.
* Please note this is an example for illustrative purposes only and should not be relied upon as financial advice
A final thought
Your super or pension doesn’t have to be “set and forget”, and it doesn’t have to force a compromise between returns, risk and values.
When considering your options, remember, the investment option should:
- Match your time horizon
- Fit your risk appetite/tolerance
- Support your investment objectives, goals and life circumstances
- Align with your values
And because every one of our options is invested ethically, you can focus on choosing what works best for you, knowing your retirement savings is doing good while working toward your future.
1 Australian Ethical commissioned research provider Lonergan Research to survey 1,005 Australians aged between 18-65 to capture insights on attitudes and behaviours towards their current superannuation fund relating to ethical and sustainable investment options and potential action if their fund invested in sectors or activities not aligned with their values. This was an opt in survey and results were indicative of the broader population, not necessarily representative. The fieldwork was completed in January 2026, and the data was weighted to the latest population estimates sourced from the Australian Bureau of statistics. One of the research’s findings was that over four in five Australians 18-65 that have superannuation expect their super fund to invest their money in an ethical, responsible or sustainable way.
Important information
Interests in the Australian Ethical Retail Superannuation Fund (ABN 49 633 667 743, USI AET0100AU) are offered by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949) and issued by the Trustee of the Fund, Australian Ethical Superannuation Pty Ltd (ABN 43 079 259 733, RSE L0001441, AFSL 526 055).
This information is of a general nature and is not intended to provide you with financial advice or take into account your personal objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances and read the Financial Services Guide, relevant product disclosure statement (PDS) and Target Market Determination (TMD) available on our website before making any decision about what is appropriate for you.
You may wish to seek financial advice from an authorised financial adviser before making an investment decision. Past performance is not a reliable indicator of future performance.
Ratings or investment returns are only one factor you should consider when deciding how to invest. Remember, superannuation is generally a long-term investment.
This document may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, the Australian Ethical accepts no responsibility for the accuracy or completeness of, nor does it endorse any such third party material. To the maximum extent permitted by law, we intend by this notice to exclude liability for this third party material.
Investing ethically and sustainably means that the investment universe will generally be more limited than non-ethical, non-sustainable portfolios in similar asset classes. This means that the portfolio(s) may not have exposure to specific assets which over or underperform over the investment cycle, and so the returns and volatility of the portfolio(s) may be higher or lower than non-ethical, non-sustainable portfolios over all investment time frames.
The information contained in this document is believed to be accurate at the time of compilation.